How are imports subtracted in the expenditure approach to calculating GDP, because?

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2026-04-23 17:01

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Imports are subtracted in the expenditure approach to calculating GDP because they represent goods and services produced in other countries and are not part of the domestic production that contributes to the country's GDP. By subtracting imports, the calculation focuses on the value of goods and services produced within the country's borders, providing a more accurate reflection of the domestic economy's performance.

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